Katie is willing to pay $3 for a pound of apples. She buys 2 pounds of...
Katie is willing to pay $3 for a pound of apples. She buys 2 pounds of apples for $2 per pound. The lowest price the seller would accept is $1.50 per pound. How much value is created as a result of this trade?
Homework Answers
Katie's willingness to pay (WTP) is $3 but Katie buys at p=$2. So the consumer surplus is (3-2)*2=$2 for 2 pounds of apple.
Seller's willingness to sell (WTS) is $1.5 but he gets $2. So the producer surplus is (2-1.5)*2=$1 for 2 pounds of apple.
Therefore total value created inthis trade is (2+1)=$3
Add Answer to:
Katie is willing to pay $3 for a pound of apples. She buys 2
pounds of...
Bethany is looking for a laptop computer. She is willing to pay $590 for it. Suppose...
Bethany is looking for a laptop computer. She is willing to pay $590 for it. Suppose this is the highest price that any potential buyer of such a computer is willing to pay. At the same time, Andrew is willing to sell his laptop, which has all the features that Bethany wants, for $390. Suppose this is the lowest price that any potential seller of such a computer is willing to accept. Bethany and Andrew never meet. Bethany never finds...
Question 35 options: Suppose you are willing to pay $100 for a used textbook. You buy...
Question 35 options: Suppose you are willing to pay $100 for a used textbook. You buy it for $60 from a seller who would be willing to sell it for as low as $30. How much value is created as a result of this exchange? $
1. 1/2+ 1/5 2. 2/5 x 1/6 3. How much would you pay for 3.5 pounds...
1. 1/2+ 1/5
2. 2/5 x 1/6
3. How much would you pay for 3.5 pounds of apples at a price
of $1.25 per pound?
4. Convert 2.5 miles to yards
5. You can fill a 15 gallon tank of gas for $33.25 or buy gas
for $2.75/gal. Which is the better deal?
Aspid Fal - Save this A * d d AaBb A AaB AC ACID. IN NI- 7. How much would you pay for 3.5 pounds of apples...
Question 1 The table below shows John's Jack's, and it's individual demand schedules for apples. Pis...
Question 1 The table below shows John's Jack's, and it's individual demand schedules for apples. Pis the price of apples in US dollars per pound (Sb, and is the quantity demanded in pounds of apples per week (bsweek) at each given price. Jars Demund John's Demand Schedule J ack's Demand Schedule Market Demand Schedule (a) Clearly showing all your work hortal summation for emple calculate the market demand for apples per week at each given price and show your answers...
2. Lisa enjoys apples and grapes. The extent of her satisfaction is revealed by the following...
2. Lisa enjoys apples and grapes. The extent of her satisfaction is revealed by the following utility schedule: Pounds of Total Pounds of Total Apples Utility Grapes Utility 8 units 1 12þ 15 3 24 a) Compute Lisa's marginal utility for each commodity. b) Assume that the price for both apples and grapes is $2 per pound. Given a budget of $6, how many pounds of each should Lisa buy to maximize her total satisfaction? Show the maximum satisfaction formula...
pters 1-3 Part 2 Janice really likes potatoes. Potatoes cost $0.50 per pound, and she has...
pters 1-3 Part 2 Janice really likes potatoes. Potatoes cost $0.50 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all subsequent pounds are worth $0.30. Instructions: Enter your answers as whole numbers. a. How many pounds of potatoes will she purchase? 3 pound(s) of potatoes b. What...
3. Ramon has $100 to spend on apples and bananas. The price of apples is $4...
3. Ramon has $100 to spend on apples and bananas. The price of apples is $4 a pound and the price of bananas is $2 a pound. The graph below represents Ramon's budget line with his consumption of apples on the Y-axis and his consumption of bananas on the X-axis. Homework 2: Problem Set 2 Apples (pounds) BL1 Bananas (pounds) (a) On the graph above: Add the intercepts of BL . Assuming that Ramon chooses to purchase 20 pounds of...
Potatoes cost Janice $1.10 per pound, and she has $5.00 that she could possibly spend on...
Potatoes cost Janice $1.10 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. If she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all subsequent pounds are worth $0.30, how many pounds of potatoes will she purchase? What if she only had $2.00 to spend? What is the marginal cost and the benefit cost? Also, what does it...
2. Below is a consumer's willingness to pay for organic apples. a. Find the TWP for...
2. Below is a consumer's willingness to pay for organic apples. a. Find the TWP for each level Q. b. Sketch the WPT on the graph and shade in the TWP. c. At a price of $2.40, how many apples would this person consume?_ Consumption Q WTP$ TWP$ at P=$2.00? 1 5.00 4.00 3.20 2.60 2.20 1.80 1.50
Economics EXERCISE 8.3 MAXIMIZING THE SURPLUS
Consider a market for the tickets to a football match. Six supporters of the Blue team would like to buy tickets; their valuations of a ticket (their WTPwillingness to pay (WTP) An indicator of how much a person values a good, measured by the maximum amount he or she would pay to acquire a unit of the good. See also: willingness to accept.closewillingness to pay (WTP) An indicator of how much a person values a good, measured by the maximum...
1. 1/2+ 1/5
2. 2/5 x 1/6
3. How much would you pay for 3.5 pounds of apples at a price
of $1.25 per pound?
4. Convert 2.5 miles to yards
5. You can fill a 15 gallon tank of gas for $33.25 or buy gas
for $2.75/gal. Which is the better deal?
Aspid Fal - Save this A * d d AaBb A AaB AC ACID. IN NI- 7. How much would you pay for 3.5 pounds of apples...
Question 1 The table below shows John's Jack's, and it's individual demand schedules for apples. Pis the price of apples in US dollars per pound (Sb, and is the quantity demanded in pounds of apples per week (bsweek) at each given price. Jars Demund John's Demand Schedule J ack's Demand Schedule Market Demand Schedule (a) Clearly showing all your work hortal summation for emple calculate the market demand for apples per week at each given price and show your answers...
2. Lisa enjoys apples and grapes. The extent of her satisfaction is revealed by the following utility schedule: Pounds of Total Pounds of Total Apples Utility Grapes Utility 8 units 1 12þ 15 3 24 a) Compute Lisa's marginal utility for each commodity. b) Assume that the price for both apples and grapes is $2 per pound. Given a budget of $6, how many pounds of each should Lisa buy to maximize her total satisfaction? Show the maximum satisfaction formula...
pters 1-3 Part 2 Janice really likes potatoes. Potatoes cost $0.50 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all subsequent pounds are worth $0.30. Instructions: Enter your answers as whole numbers. a. How many pounds of potatoes will she purchase? 3 pound(s) of potatoes b. What...
3. Ramon has $100 to spend on apples and bananas. The price of apples is $4 a pound and the price of bananas is $2 a pound. The graph below represents Ramon's budget line with his consumption of apples on the Y-axis and his consumption of bananas on the X-axis. Homework 2: Problem Set 2 Apples (pounds) BL1 Bananas (pounds) (a) On the graph above: Add the intercepts of BL . Assuming that Ramon chooses to purchase 20 pounds of...
2. Below is a consumer's willingness to pay for organic apples. a. Find the TWP for each level Q. b. Sketch the WPT on the graph and shade in the TWP. c. At a price of $2.40, how many apples would this person consume?_ Consumption Q WTP$ TWP$ at P=$2.00? 1 5.00 4.00 3.20 2.60 2.20 1.80 1.50
Most questions answered within 3 hours.
-
A square current loop 5.4 cm on each side carries a 510 mA
current. The loop...
asked 48 minutes ago -
What are five tips in conducting knowledge assessment/literature
review research? Each of these tips needs to...
asked 1 hour ago -
Antigen presenting cells link innate and adaptive immune
responses. In the theoretical scenario where phagosomes cannot...
asked 1 hour ago -
Dealing with conflict, in my opinion, is a skill and an art. I
believe that those...
asked 2 hours ago -
6. A long straight wire with circular cross section and radius
1.5 cm carries a 1.2...
asked 2 hours ago -
Deacon Corporation has provided the following financial data
from its balance sheet and income statement:
Year...
asked 3 hours ago -
List and discuss at least three variables from everyday life for
which you expect the variable ...
asked 2 hours ago -
A high-pass filter consists of a 1.60 μF capacitor in series
with a 125 Ω resistor....
asked 3 hours ago -
A newly developed artificial intelligence has trouble
distinguishing hand-written numbers from hand-written alphabets.
There are pictures...
asked 3 hours ago -
The carbonate ion CO3 2- has multiple resonance structures.
a. Draw them and assign the hybridization...
asked 3 hours ago -
In doing an allocation for a basket purchase
Use the individual costs and the total market...
asked 3 hours ago -
what were the social political and economic causes and impacts of
the late 19th century urban...
asked 3 hours ago